The idea of dropshipping products appeals to many people who are looking for a way to make some extra money, or perhaps start their own business. A straightforward concept, that doesn’t need any investment, it’s no doubt one of the easiest business opportunities to get up an running. But before you look into suppliers, where you’re going to market your products, and whether or not you need your own website, you first of all need to decide what to sell.
Using tools like eBay Pulse and looking at the Amazon Bestseller lists will give you a good idea of what people are looking for and buying, but these may or may not be the best products to build your business on. Markets like clothing, electronics and toys are always popular, and will always have lots of hungry customers – but they are also very competitive too, making it hard for you to get established. So what’s the best way to go about deciding which dropship products to sell?
Choosing a market
In order to decide which products you want to sell, you first of all need to decide which market you are going to focus on. The reasons for this are quite simple. If you concentrate on selling a product, your business will only be profitable for as long as you can find customers for that particular item. However, if you concentrate on finding the right market to sell to, you can sell that product, as well as a whole range of others too – which is how you build a profitable dropshipping business.
There are plenty of different markets to choose from, and your selection criteria really comes down to four things – the level of competition, the number of buying customers, the range of products, and the availability of suppliers.
Markets like toys, electronics, and even pet supplies might have plenty of buying customers who are passionate about their particular interest, but there’s also lots of competition. More specialist markets might have less competition, but are there plenty of customers who are willing to spend their money?
You might find a particular product that seems to be selling well, but is there are market for other related items that will let you expand and grow your business, or is it just a one-off, fad product? And once you do find a good market that you want to focus on, will you be able to find a dropshipping company who can supply you with the products you need, at a price that will make you money? It doesn’t matter how much potential a market might have if you can’t get the right products at the right price.
This can be a lot to consider when you’re choosing your market, but it’s important if you want to make sure you get the right one. If you decide that you do want to try and sell dropship products in one of the popular markets, one of the best ways to establish yourself and your business, is to carve out a niche in a small part of that market, or another market related to it.
Carve out a niche
Spending a few minutes searching on eBay, or using some of the research tools, like SaleHoo Research Labs and Terapeak, which help you analyse what people are buying on eBay, will show you that things like iPods and mobile phones are some of the most popular items sold on the world’s biggest auction site.
If you were to try and sell dropship products in markets like these, all the competition would make it very hard to make a decent profit and build a stable, long-term business. But if you looked at smaller ‘sub’ markets you could exploit, or markets for related products, you could carve out a very profitable niche for yourself.
For example, sourcing iPhones would be hard enough, and doing it at a price that would let you compete with the established sellers will be nearly impossible. However, sourcing replacement screens for iPhones, and selling them with a video that shows you how to fit it, might be popular with the many people who drop their iPhones and don’t want to pay the high price the manufacturer might charge for fixing it. This is just one example, but the really successful dropshippers are those who can look at the popular markets and find other related markets that offer lots of profit potential.
Whichever market you decide to go into, it will play a big part in whether your dropshipping business succeeds or fails, so it’s definitely something you want to spend some time thinking about.